The sharp rise in oil prices and the resulting higher fuel costs have not only put US President Trump in a difficult position. Gasoline prices have risen by 17% and diesel prices by 22% in the past week, reaching levels not seen since 2014.
Hungary
In response to rising fuel prices, the Hungarian government has announced a capping maximum price for gasoline and diesel at gas stations. This will also play a role in the Hungarian election campaign.
In a video posted on social media, Prime Minister Orbán explained that with the consequences of the war against Iran "the international oil price explosion has also reached Hungary". He added that the maximum prices would apply only to vehicles with Hungarian license plates and registration documents. To ensure adequate supply, Hungary would also release part of its oil reserves.
Promotion
Orbán’s authoritarian government currently faces a significant challenge from the centre-right Tisza party in next month’s parliamentary elections. According to the latest opinion polls, Orbán’s Fidesz party is expected to lose the vote, and Hungary will have a more pro-European government.
Oil Pipeline
Orbán called on the EU to lift restrictions on imports of Russian gas and oil. His government has consistently opposed EU efforts to reduce Russian energy imports over the past years and, along with neighbouring Slovakia, has maintained and even increased Russian oil and gas deliveries since the start of Russia’s war against Ukraine.
Both countries received temporary exemptions from the EU ban and imported Russian crude oil via the Druzhba pipeline, which runs through Ukraine. However, oil deliveries via this pipeline have been halted since 27 January, exacerbating tensions between Hungary and Ukraine.
The Ukrainian government claims a Russian drone attack damaged the pipeline infrastructure, while Orbán accuses Ukrainian President Zelensky of deliberately delaying deliveries. In response, Orbán has blocked a new set of EU sanctions against Russia and withheld a €90 billion EU loan to Ukraine until oil supplies are resumed.
Elections
With just a month to go before the elections and trailing in the polls, Orbán has accused Zelensky of wanting to create an energy crisis in Hungary to influence the election outcome. This claim is part of his government's extensive anti-Ukraine media campaign leading up to the elections on 12 April.
The tensions were further escalated when Hungary recently arrested seven employees of a Ukrainian state bank. Two armored vehicles carrying tens of millions of euros in cash and gold were seized on suspicion of money laundering. Ukraine has maintained that the money transports were part of regular transactions between state banks and has strongly denied the money laundering allegations.